MITEK SYSTEMS INC (MITK) Stock Fundamental Analysis
USA - NASDAQ:MITK - US6067102003 - Common Stock
8.95 USD
+0.25 (+2.87%)
9.12 USD
+0.17 (+1.9%)
Overall MITK gets a fundamental rating of 5 out of 10. We evaluated MITK against 281 industry peers in the Software industry. MITK has a medium profitability rating, but doesn't score so well on its financial health evaluation. MITK may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
MITK had positive earnings in the past year.
MITK had a positive operating cash flow in the past year.
In the past 5 years MITK has always been profitable.
In the past 5 years MITK always reported a positive cash flow from operatings.
1.2 Ratios
MITK's Return On Assets of 3.47% is fine compared to the rest of the industry. MITK outperforms 68.33% of its industry peers.
MITK's Return On Equity of 6.53% is fine compared to the rest of the industry. MITK outperforms 71.17% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.29%, MITK is in the better half of the industry, outperforming 72.60% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for MITK is significantly below the industry average of 12.04%.
The last Return On Invested Capital (4.29%) for MITK is above the 3 year average (3.13%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.47% | ||
| ROE | 6.53% | ||
| ROIC | 4.29% |
ROA(3y)1.2%
ROA(5y)2.02%
ROE(3y)2.4%
ROE(5y)3.45%
ROIC(3y)3.13%
ROIC(5y)3.83%
1.3 Margins
With a decent Profit Margin value of 8.71%, MITK is doing good in the industry, outperforming 70.46% of the companies in the same industry.
In the last couple of years the Profit Margin of MITK has declined.
MITK's Operating Margin of 12.33% is fine compared to the rest of the industry. MITK outperforms 77.94% of its industry peers.
In the last couple of years the Operating Margin of MITK has declined.
The Gross Margin of MITK (85.59%) is better than 93.59% of its industry peers.
In the last couple of years the Gross Margin of MITK has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.33% | ||
| PM (TTM) | 8.71% | ||
| GM | 85.59% |
OM growth 3Y-43.97%
OM growth 5YN/A
PM growth 3Y-34.17%
PM growth 5YN/A
GM growth 3Y-0.79%
GM growth 5Y0.08%
2. Health
2.1 Basic Checks
MITK has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
MITK has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, MITK has more shares outstanding
MITK has a worse debt/assets ratio than last year.
2.2 Solvency
MITK has an Altman-Z score of 1.69. This is a bad value and indicates that MITK is not financially healthy and even has some risk of bankruptcy.
MITK's Altman-Z score of 1.69 is in line compared to the rest of the industry. MITK outperforms 47.33% of its industry peers.
MITK has a debt to FCF ratio of 2.74. This is a good value and a sign of high solvency as MITK would need 2.74 years to pay back of all of its debts.
MITK has a Debt to FCF ratio of 2.74. This is in the better half of the industry: MITK outperforms 65.48% of its industry peers.
A Debt/Equity ratio of 0.64 indicates that MITK is somewhat dependend on debt financing.
MITK has a Debt to Equity ratio of 0.64. This is in the lower half of the industry: MITK underperforms 68.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 2.74 | ||
| Altman-Z | 1.69 |
ROIC/WACC0.44
WACC9.74%
2.3 Liquidity
MITK has a Current Ratio of 1.14. This is a normal value and indicates that MITK is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of MITK (1.14) is worse than 66.90% of its industry peers.
MITK has a Quick Ratio of 1.14. This is a normal value and indicates that MITK is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.14, MITK is not doing good in the industry: 65.84% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.14 | ||
| Quick Ratio | 1.14 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 35.90% over the past year.
The Earnings Per Share has been growing by 17.42% on average over the past years. This is quite good.
The Revenue has been growing slightly by 6.98% in the past year.
Measured over the past years, MITK shows a quite strong growth in Revenue. The Revenue has been growing by 15.26% on average per year.
EPS 1Y (TTM)35.9%
EPS 3Y8.58%
EPS 5Y17.42%
EPS Q2Q%-12%
Revenue 1Y (TTM)6.98%
Revenue growth 3Y12.83%
Revenue growth 5Y15.26%
Sales Q2Q%1.67%
3.2 Future
MITK is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.65% yearly.
Based on estimates for the next years, MITK will show a small growth in Revenue. The Revenue will grow by 5.84% on average per year.
EPS Next Y-4.55%
EPS Next 2Y6.79%
EPS Next 3Y5.65%
EPS Next 5YN/A
Revenue Next Year3.23%
Revenue Next 2Y5.36%
Revenue Next 3Y5.84%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 8.44, the valuation of MITK can be described as very reasonable.
MITK's Price/Earnings ratio is rather cheap when compared to the industry. MITK is cheaper than 90.04% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 25.45. MITK is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 8.18, the valuation of MITK can be described as very reasonable.
90.39% of the companies in the same industry are more expensive than MITK, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.46, MITK is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.44 | ||
| Fwd PE | 8.18 |
4.2 Price Multiples
94.66% of the companies in the same industry are more expensive than MITK, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, MITK is valued cheaply inside the industry as 96.09% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.32 | ||
| EV/EBITDA | 5.07 |
4.3 Compensation for Growth
MITK has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.48
EPS Next 2Y6.79%
EPS Next 3Y5.65%
5. Dividend
5.1 Amount
No dividends for MITK!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
8.95
+0.25 (+2.87%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners76.41%
Inst Owner Change2.19%
Ins Owners2.13%
Ins Owner Change1.64%
Market Cap408.57M
Revenue(TTM)178.13M
Net Income(TTM)15.51M
Analysts81.67
Price Target13.26 (48.16%)
Short Float %4.77%
Short Ratio6.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)25.57%
Min EPS beat(2)14.53%
Max EPS beat(2)36.62%
EPS beat(4)4
Avg EPS beat(4)35.26%
Min EPS beat(4)1.42%
Max EPS beat(4)88.46%
EPS beat(8)5
Avg EPS beat(8)13.54%
EPS beat(12)8
Avg EPS beat(12)16.86%
EPS beat(16)12
Avg EPS beat(16)17.43%
Revenue beat(2)2
Avg Revenue beat(2)4.55%
Min Revenue beat(2)1.85%
Max Revenue beat(2)7.26%
Revenue beat(4)4
Avg Revenue beat(4)3.14%
Min Revenue beat(4)0.88%
Max Revenue beat(4)7.26%
Revenue beat(8)4
Avg Revenue beat(8)-0.56%
Revenue beat(12)7
Avg Revenue beat(12)3%
Revenue beat(16)9
Avg Revenue beat(16)3.17%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)6.93%
EPS NQ rev (3m)4.85%
EPS NY rev (1m)0%
EPS NY rev (3m)3.65%
Revenue NQ rev (1m)0.31%
Revenue NQ rev (3m)-3.89%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.44 | ||
| Fwd PE | 8.18 | ||
| P/S | 2.29 | ||
| P/FCF | 7.32 | ||
| P/OCF | 7.17 | ||
| P/B | 1.72 | ||
| P/tB | 6.91 | ||
| EV/EBITDA | 5.07 |
EPS(TTM)1.06
EY11.84%
EPS(NY)1.09
Fwd EY12.23%
FCF(TTM)1.22
FCFY13.66%
OCF(TTM)1.25
OCFY13.95%
SpS3.9
BVpS5.2
TBVpS1.29
PEG (NY)N/A
PEG (5Y)0.48
Graham Number11.14
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.47% | ||
| ROE | 6.53% | ||
| ROCE | 8.86% | ||
| ROIC | 4.29% | ||
| ROICexc | 7.39% | ||
| ROICexgc | 32.57% | ||
| OM | 12.33% | ||
| PM (TTM) | 8.71% | ||
| GM | 85.59% | ||
| FCFM | 31.33% |
ROA(3y)1.2%
ROA(5y)2.02%
ROE(3y)2.4%
ROE(5y)3.45%
ROIC(3y)3.13%
ROIC(5y)3.83%
ROICexc(3y)4.74%
ROICexc(5y)6.29%
ROICexgc(3y)31.43%
ROICexgc(5y)27.46%
ROCE(3y)4.04%
ROCE(5y)4.94%
ROICexgc growth 3Y-20.78%
ROICexgc growth 5YN/A
ROICexc growth 3Y-40.5%
ROICexc growth 5YN/A
OM growth 3Y-43.97%
OM growth 5YN/A
PM growth 3Y-34.17%
PM growth 5YN/A
GM growth 3Y-0.79%
GM growth 5Y0.08%
F-Score7
Asset Turnover0.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 2.74 | ||
| Debt/EBITDA | 4.01 | ||
| Cap/Depr | 7.33% | ||
| Cap/Sales | 0.66% | ||
| Interest Coverage | 18.76 | ||
| Cash Conversion | 149.79% | ||
| Profit Quality | 359.8% | ||
| Current Ratio | 1.14 | ||
| Quick Ratio | 1.14 | ||
| Altman-Z | 1.69 |
F-Score7
WACC9.74%
ROIC/WACC0.44
Cap/Depr(3y)7.2%
Cap/Depr(5y)9.44%
Cap/Sales(3y)0.74%
Cap/Sales(5y)0.83%
Profit Quality(3y)714.7%
Profit Quality(5y)578.49%
High Growth Momentum
Growth
EPS 1Y (TTM)35.9%
EPS 3Y8.58%
EPS 5Y17.42%
EPS Q2Q%-12%
EPS Next Y-4.55%
EPS Next 2Y6.79%
EPS Next 3Y5.65%
EPS Next 5YN/A
Revenue 1Y (TTM)6.98%
Revenue growth 3Y12.83%
Revenue growth 5Y15.26%
Sales Q2Q%1.67%
Revenue Next Year3.23%
Revenue Next 2Y5.36%
Revenue Next 3Y5.84%
Revenue Next 5YN/A
EBIT growth 1Y523.73%
EBIT growth 3Y-36.78%
EBIT growth 5YN/A
EBIT Next Year23.92%
EBIT Next 3Y15.23%
EBIT Next 5YN/A
FCF growth 1Y48.45%
FCF growth 3Y-5.59%
FCF growth 5Y18.06%
OCF growth 1Y48.2%
OCF growth 3Y-5.32%
OCF growth 5Y17.33%
MITEK SYSTEMS INC / MITK FAQ
What is the ChartMill fundamental rating of MITEK SYSTEMS INC (MITK) stock?
ChartMill assigns a fundamental rating of 5 / 10 to MITK.
Can you provide the valuation status for MITEK SYSTEMS INC?
ChartMill assigns a valuation rating of 7 / 10 to MITEK SYSTEMS INC (MITK). This can be considered as Undervalued.
How profitable is MITEK SYSTEMS INC (MITK) stock?
MITEK SYSTEMS INC (MITK) has a profitability rating of 6 / 10.
Can you provide the financial health for MITK stock?
The financial health rating of MITEK SYSTEMS INC (MITK) is 3 / 10.
Can you provide the expected EPS growth for MITK stock?
The Earnings per Share (EPS) of MITEK SYSTEMS INC (MITK) is expected to decline by -4.55% in the next year.